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Hungary
At the end of 2004 the mobile penetration in Hungary exceeded 80%, with
a total market counting 8.1 million subscriptions, compared to 7.4 million at
the end of 2003.
With the Hungarian mobile market nearing its saturation, subscription growth is flattening, with a monthly net gain of approximately 60,000 new additions in the market. The struggle for market shares now seems to be centring on customer retention.
Pannon GSM
Pannon GSM is the second largest of three operators in Hungary, and Pannon GSM’s
estimated market share at year-end 2004 was 34%.
In order to ensure profitability Pannon GSM has pursued a segmented approach, focusing on small and medium-sized enterprises (SMEs) and on the attractive high-end customer segment. Pannon GSM has succeded with its Mobile Office product line, offering integrated, all-inclusive telecommunications solutions to the business market. The company has also focused on the youth segment through the djuice brand, launched in November 2003. At the end of 2004, 10% of Pannon GSM’s customers were djuice subscribers.
Pannon GSM has also introduced advanced content services, including video streaming of Hungary’s most popular television shows. In 2004, non-voice revenues accounted for approximately 10% of total revenues.
In December 2004, Pannon GSM acquired one of three UMTS licenses in Hungary. The company also acquired GSM-1800 frequencies, which will improve the utilisation of Pannon GSM’s existing GSM network. In January 2005, Pannon GSM embarked on the first phase of its UMTS network development project. Pannon GSM has also focused on upgrading its existing GSM network with EDGE technology to meet the rising demand for higher data speeds.
Pannon GSM was established in 1993 and is one of three mobile
operators in Hungary. Telenor contributed to the founding of the company, and
has, since February 2002, held a 100% ownership share.
More information: www.pannon.hu
Ukraine
The mobile market in Ukraine has grown significantly in the past few years,
with mobile penetration rising from 8% at the beginning of 2003, to 29% at year-end
2004. The total number of subscriptions in Ukraine reached almost 14 million
at the beginning of 2005, surpassing the number of fixed line subscribers during
the year.
The Ukrainian gross domestic product is showing a strong growth and the demand for mobile communication is expected to increase. The fierce competition between the two largest nationwide operators, as well as other players, is expected to result in price reductions, which will further stimulate uptake, usage and the development of new services.
Kyivstar GSM
Kyivstar’s estimated market share at the end of 2004 was 46%. The company
more than doubled its customer base during 2004, entering 2005 with a total
of 6.3 million subscriptions.
Kyivstar’s efforts to acquire new subscribers include the distribution of favourable start packages. Kyivstar launched the djuice brand on 1 September 2004, offering the youth segment their tailor-made subscriptions. The number of djuice subscriptions reached one million in December, merely three and a half months after launch. In the third and fourth quarters of the year Kyivstar launched several initiatives aimed at the mass market.
Kyivstar’s revenues increased in 2004, primarily due to high subscriber uptake. Non-voice revenues more than doubled in the course of 2004, generating approximately 6% of Kyivstar’s total revenues in the fourth quarter, suggesting that more advanced services are in demand.
Kyivstar GSM is the second largest mobile operator in Ukraine.
Telenor became part owner in 1998, and currently holds an ownership share of
56.5%.
More information: www.kyivstar.net
Montenegro
At the end of 2004, the mobile penetration in Montenegro was approximately 78%,
representing a figure of 482,000 registered subscriptions, compared to 427,000
at the end of 2003.
There are two licensed mobile operators in Montenegro: ProMonte GSM and Monet. Monet is owned by Telecom Montenegro, which also provides fixed telephony and Internet services. In the beginning of 2005 51% of the shares in Telecom Montenegro were sold to the Hungarian operator Matav.
The macroeconomic situation in Montenegro is dominated by moderate economic growth and a high unemployment rate.
In December 2000, an Agency for Telecommunications was established and a new Montenegrin telecommunications Law was adopted. There are no formal obstacles for direct interconnection with other operators in the country or internationally. ProMonte GSM has finalised interconnection agreements with Monet and the Serbian operator Mobtel, thereby obtaining lower prices from Telecom Montenegro.
ProMonte GSM
ProMonte GSM, has at year-end 2004 a 58% market share and is the market leader
in Montenegro. At the end of 2004, ProMonte GSM’s network covered approximately
71% of the country, and 98% of the Montenegrin population. The operator launched
mobile data services over GPRS in July 2004. ProMonte GSM plans to launch EDGE
during first half of 2005. ProMonte GSM was established in 1996 and was Montenegro’s
first mobile operator. Telenor became part owner in 1996 and acquired a 100%
ownership of ProMonte GSM in August 2004.
More information: www.promonte.com
| Companies owned by Telenor |
Population
(in millions) |
No. of mobile
subscriptions (in millions) |
Market
share (%) |
 |
|||
| Pannon GSM (Hungary) |
10.0
|
2,770
|
34
|
| Kyivstar GSM (Ukraine) |
47.2
|
6,252
|
45
|
| Promonte GSM (Montenegro) |
0.7
|
279
|
58
|
|
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Russia
In 2004, the number of mobile subscriptions in Russia grew by 104%. At year-end
mobile penetration was 51.2%, counting more than 74.4 million subscriptions.
In Moscow, the penetration was close to 100% while in the regions the penetration
reached 43.5%. The subscription growth in Moscow is now decreasing, while the
regional markets are still far from saturated. The opportunities for further
growth are still good.
VimpelCom is the second largest operator in Russia, only marginally behind the market leader.
VimpelCom in 2004
The VimpelCom Group's license portfolio covers approximately 94% of Russia's
population (136 million people), including the City of Moscow, the Moscow Region
and St. Petersburg. VimpelCom also covers the entire territory of Kazakhstan.
Telenor became part owner in 1999, and held, at the end of 2004, an ownership share of 29.9%, and a voting share of 26.6%. The merger between VimpelCom and VimpelCom–Region was completed and came into force on 26 November 2004.
In 2004, VimpelCom won the largest share of new subscriptions, acquiring 38% of all new additions. At year-end 2004, VimpelCom’s market share was 34.7% (26.6 million subscriptions).
VimpelCom’s strategy is to provide nationwide GPRS coverage, and EDGE/UMTS in selected densely populated areas. In 2004, VimpelCom launched EDGE services in several regions in the North-West District. A pilot UMTS network was developed and tested during 2004. No UMTS licences have been issued in the Russian market.
VimpelCom
VimpelCom was established in 1992, and operates under the Bee Line brand in
Russia. VimpelCom was the first Russian company to list its securities on the
New York Stock Exchange (NYSE), in November 1996.
For more information: www.vimpelcom.com
| HUNGARY | |
|
|
| Population (2004, in millions) 1) | 10.0 |
|
|
| Land Area (sq KM) 1) | 93,030 |
|
|
| Population per sq KM 1) | 108 |
|
|
| Population growth (% average 1999–2003) 1) | -0.3 |
|
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| Population in Urban areas (2003, % of total) 1) | 64.8 |
|
|
| GDP per head (US$) 2004 estimate 1) | 10,280 |
|
|
| GDP per head (US$ PPP) – 2004 estimate 1) | 15,180 |
|
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| Real GDP growth 2004 estimate (%) 1) | 3.9 |
|
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| Inflation 2004 estimate (%) 1) | 6.8 |
|
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| Telecom revenues (% of total GDP, 2002) 2) | 5.6 |
|
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| Mobile revenues (% of total GDP, 2002) 2) | 2.0 |
|
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| Fixed line penetration (%), 2003 2) | 35 |
|
|
| Source: 1) EIU (Economist Intelligence Unit) 2) ITU (International Telecom Unit) |
|
| Pannon GSM (Hungary) | 2004 | 2003 | 2002 | 2001 | 2000 |
|
|||||
| No. of mobile subscriptions (in thousands) | 2,770 | 2,618 | 2,450 | - | - |
|
|||||
| – of which prepaid (in thousands) | 1,991 | 2,023 | 1,910 | - | - |
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| Traffic minutes per GSM subscription per month, generated and terminated | 123 | 111 | 113 | - | - |
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| Average revenue per GSM subscription per month (ARPU): | 176 | 165 | 180 | - | - |
|
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| Market share GSM (%) | 34 | 36 | 38 | - | - |
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| Mobile telephony penetration (%) | 80 | 73 | 63 | - | - |
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| UKRAINE | |
|
|
| Population (2004, in millions) 1) | 47.2 |
|
|
| Land Area (sq KM) 1) | 603,700 |
|
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| Population per sq KM 1) | 78 |
|
|
| Population growth (% average 1999–2003) 1) | -1.0 |
|
|
| Population in Urban areas (2003, % of total) 1) | 68.5 |
|
|
| GDP per head (US$) 2004 estimate 1) | 1,420 |
|
|
| GDP per head (US$ PPP) – 2004 estimate 1) | 5,930 |
|
|
| Real GDP growth 2004 estimate (%) 1) | 12.0 |
|
|
| Inflation 2004 estimate (%) 1) | 9.0 |
|
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| Telecom revenues (% of total GDP, 2002) 2) | 4.5 |
|
|
| Mobile revenues (% of total GDP, 2002) 2) | 1.2 |
|
|
| Fixed line penetration (%), 2003 2) | 23 |
|
|
| Source: 1) EIU (Economist Intelligence Unit) 2) ITU (International Telecom Unit) |
|
| Kyivstar GSM (Ukraine) | 2004 | 2003 | 2002 | 2001 | 2000 |
|
|||||
| No. of mobile subscriptions (in thousands) | 6,252 | 3,037 | 1,856 | - | - |
|
|||||
| – of which prepaid (in thousands) | 5,532 | 2,503 | 1,472 | - | - |
|
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| Traffic minutes per GSM subscription per month, generated and terminated | 84 | 57 | 49 | - | - |
|
|||||
| Average revenue per GSM subscription per month (ARPU): | 90 | 94 | 107 | - | - |
|
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| Market share GSM (%) | 45 | 47 | 49 | - | - |
|
|||||
| Mobile telephony penetration (%) | 29 | 14 | 8 | - | - |
|
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| MONTENEGRO | |
|
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| Population (2004, in millions) 1) | 0.6 |
|
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| Land Area (sq KM) 1) | 13,812 |
|
|
| Population per sq KM 1) | 45 |
|
|
| Population growth (% average 1998–2002) 1) | -12% |
|
|
| Population in Urban areas (2002, % of total) 1) | 0.62 |
|
|
| GDP per head (US$) 2004 estimate 1) | 2,378 |
|
|
| Real GDP growth 2004 estimate (%) 1) | 3.0% |
|
|
| Inflation 2004 estimate (%) 1) | 4.3% |
|
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| Telecom revenues (% of total GDP, 2002) 3) | 203 |
|
|
| Mobile revenues (% of total GDP, 2002) 3) | 106 |
|
|
| Fixed line penetration (%), 2003 3) | 28% |
|
|
| Source: 1) Serbia and Montenegro Statistical Office 2) CBCG (Central Bank of Montenegro) 3) Annual Report 2003, Agentel (Agency for telecommunications in Montenegro) |
|
| ProMonte GSM (Montenegro) | 2004 | 2003 | 2002 | 2001 | 2000 |
|
|||||
| No. of mobile subscriptions (in thousands) | 279 | - | - | - | - |
|
|||||
| – of which prepaid (in thousands) | 235 | - | - | - | - |
|
|||||
| Traffic minutes per GSM subscription per month, generated and terminated | - | - | - | - | - |
|
|||||
| Average revenue per GSM subscription per month (ARPU): | - | - | - | - | - |
|
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| Market share GSM (%) | 58 | - | - | - | - |
|
|||||
| Mobile telephony penetration (%) | - | - | - | - | - |
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